THE GOVERNMENT of The Bahamas has approved the sale of Esso operations in that country to the Barbados-based Simpson Oil Limited (SOL).
According to reports from Nassau, the sale is expected to cost around US$80 million and is subject to requirements including the “protection” of local gas station operators.
Last July, it was revealed that Sir Kyffin Simpson, the man behind SOL, had secured an agreement to buy ExxonMobil and its affiliates in Barbados and six other regional territories. ExxonMobil is the parent company of Esso.
SOL was given the green light to take over the Barbados operations in October but was told by the Fair Trading Commission (FTC) that it would have to continue selling under the ESSO brand unless it got permission from the FTC.
Meanwhile, The Bahamas government had initially indicated it had some misgivings about the deal and believed Bahamians should be given a chance to participate in the process.
ESSO is heavily involved in research and exploration but decided to sell its fuel marketing businesses in The Bahamas, Barbados, Bermuda, Dominican Republic, Grand Cayman, Guadeloupe and Martinique.
That business includes 170 Esso service stations – nine of which are located in Barbados, its industrial and wholesale operations, as well as the marine and aviation refuelling.
The SOL deal also included a 14.5 per cent share in SRA Oil Refinery located in Martinique.
The purchase of Esso’s operations followed the acquisition of Shell’s assets in the Eastern Caribbean, Guyana, Suriname and Belize.
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